The bank singled out Binance and Kraken, stating that the exchanges have not responded to security concerns
A man walks past a TSB Bank building in London
The British bank TSB wants to prevent 5.4 million of its customers from using their accounts to buy cryptocurrencies.
The commercial lender is reportedly taking this step because of concerns about increasing fraud on crypto exchanges, which is exposing its users to further losses.
According to sources cited by The times, TSB specifically targets Binance and Kraken as platforms.low security standards“That make the two exchanges most vulnerable to fraudulent activity.
The bank, which has 536 branches across the UK, has cited cases of weak security that have enabled fraudsters to “Set up e-wallets and steal people’s money. “
On June 15, the TSB published a recommendation for its customers with the request, “Be especially vigilant when it comes to crypto investment advisors“According to the bank, customers should be careful not to process calls, emails or texts from crypto-related sources as they are.”a scam. “
Be especially vigilant when it comes to Crypto investment advisers. If you get a phone call, email, or text from one, it’s a scam. Never reach out of the blue in touch. Learn more: https://t.co/jfNPCdlkzJ #ThinkTwiceThinkFraud pic.twitter.com/A835A7qJy5
– TSB (@TSB) June 15, 2021
Binance denies TSB claims
TSB Bank reportedly received 849 fraud-related reports about Binance between March 15 and April 15 alone. TSB customers said they lost money in the 30 days, with the bank then demanding a response from Binance on the matter.
According to The Times report, however, the stock exchange failed and, despite its best efforts, “barely” cooperated.
Binance has refuted these claims, adding that it takes its responsibility for user protection “very seriously”.
“If we become aware of these allegations, we will take immediate action and have excellent experience working with law enforcement agencies“Said Binance in a statement.
Kraken has also responded to TSB fraud allegations, with Exchange Compliance Officer Steven Christie saying that Kraken’s platform “responded to well over 1,000 different inquiries from law enforcement authorities in 2020 alone. “
He added that the exchange’s operation is in line with regulatory and compliance requirements.
The TSB bank move comes just days after the UK regulator FCA warned that most crypto investors were ignoring warnings and advice on investing in cryptocurrencies.
The latest research showed that nearly 2.3 million adults in the UK own or have invested in crypto. However, only one in ten knew about the various regulatory warnings on cryptocurrencies.